1. INTRODUCTION
The Board of Directors of Chemical Company of Malaysia Berhad (“CCM” or “the Company”) wishes to announce that the Company has drawdown a term loan of USD42 million (equivalent to RM150,570,000) from Sumitomo Mitsui Banking Corporation Malaysia Berhad (“Sumitomo”).
2. PURPOSE FOR THE TERM LOAN DRAWDOWN
The term loan drawdown is mainly to refinance the Company’s existing borrowings of RM130 million that is maturing on 30 April 2015 and the remaining balance will be utilized for general working capital. The term loan facility has a three (3) years tenure expiring 30 April 2018.
3. INFORMATION ON CHEMICAL COMPANY OF MALAYSIA BERHAD
CCM was incorporated in Malaysia on 7 August 1963 under the Companies Ordinance, 1940-1946 under the name of Chemical Company of Malaysia Limited. On 15 April 1966, CCM assumed its present name. It was listed on the Main Board of Bursa Securities on 24 March 1966 and having its registered address at 13th Floor, Menara PNB, 201-A Jalan Tun Razak, 50400 Kuala Lumpur.
CCM is an investment holding and Management Company with subsidiaries and an associate company engaged in the manufacturing, marketing and/ or supply of fertilizers, chemicals and pharmaceuticals products and services.
4. FINANCIAL EFFECT OF THE TERM LOAN FACILITY
(a) Share Capital
The term loan will not have any effect on the share capital of the Company and the shareholding of the substantial shareholders of the Company.
(b) Net Assets
The term loan will not have any material effect on the net assets of the CCM Group for the financial year ending 31 December 2015.
(c) Earnings
The term loan will not have any material effect on the earnings of the CCM Group for the financial year ending 31 December 2015.
5. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED
None of the Directors and/or substantial shareholders of CCM and persons connected have any interest, direct or indirect, in the term loan facility.
6. DIRECTORS’ RECOMMENDATION
The Board, after careful deliberation, is of the opinion that term loan drawdown is in the best interest of the Company and CCM Group in managing its cashflow and liquidity.
7. APPROVAL REQUIRED
No approval from the relevant regulatory authority is required for the term loan facility from Sumitomo.
8. DOCUMENTS FOR INSPECTION
The relevant documents in relation to the term loan facility are available for inspection at the Registered Office of the Company at 13th Floor, Menara PNB, 201-A Jalan Tun Razak, 50400 Kuala Lumpur during normal office hours for a period of one month from the date of this announcement.
This announcement is dated 5 May 2015
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